BATTSETSEG TUVSHINTUGSDeputy Director General, Foreign Trade and Economic Cooperation Department,

MFA

FUNDAMENTAL TRANSIT POLICY ISSUES IN

MONGOLIA EURO-ASIAN REGIONAL MIDTERM REVIEW OF THE VIENNA PROGRAMME OF ACTION Bangkok, Thailand, February 11-12, 2018

STATUS OF IMPLEMENTATION OF PRIORITY 1

CHALLENGES FACING

WAY FORWARD, SUGGESSIONS

STRENGTHENING LEGAL BASIS OF MULTILATERAL, REGIONAL AND BILATERAL COOPERATION ON TRANSIT TRANSPORT

INTERGOVERNMENTAL AGREEMENT ON DRY PORTS, acceded in 2016

INTERGOVERNMENTAL AGREEMENT ON ROAD TRANSPORTATIONALONG THE ASIA HIGHWAY NETWORK BETWEEN GOVERNMENTS OFMONGOLIA, THE RUSSIAN FEDERATION AND THE PEOPLE’S REPUBLICOF CHINA, signed in 2016

INTERGOVERNMENTAL AGREEMENT ON THE ACCESS TO AND FROMTHE SEA AND TRANSIT TRANSPORTATION THROUGH CHINESETERRITORY BY MONGOLIA, renewed in 2014

INTERGOVERNMENTAL AGREEMENT BETWEEN GOVERNMENTS OFMONGOLIA AND THE PEOPLE’S REPUBLIC OF CHINA ON DEVELOPINGRAILWAY TRANSIT TRANSPORTATION, signed in 2014

INTERGOVERNMENTAL AGREEMENT BETWEEN GOVERNMENTS OFMONGOLIA AND THE RUSSIAN FEDERATION ON TERMS FOR RAILFREIGHT TRANSIT TRANSPORTATION, signed in 2018

STRENGTHENING LEGAL BASIS OF MULTILATERAL, REGIONAL AND BILATERAL COOPERATION ON TRANSIT TRANSPORT

MONGOLIA –RUSSIA-CHINA ECONOMIC CORRIDOR PROGRAM, signedin 2016

TRILATERAL INTER-AGENCY MEMORANDUM OF UNDERSTANDING ONESTABLISHING A TRILAETRAL MECHANISM COORDINATING “MONGOLIA–RUSSIA-CHINA ECONOMIC CORRIDOR PROGRAM” IMPLEMENTATION,signed in 2018

INTERGOVERNMENTAL MEMORANDUM OF UNDERSTANDING ONALIGNING MONGOLIA’S “DEVELOPMENT ROAD” PROGRAM WITHCHINA’S “BELT AND ROAD INITIATIVE”, signed in 2017

WITH LATVIA, INTERGOVERNMENTAL AGREEMENT ON INTERNATIONALROAD TRANSPORTAION, signed in 2014

WITH HUNGARY, INTERGOVERNMENTAL AGREEMENT ON FREIGHTAND PASSENGER TRANSPORTAION BY ROAD , signed in 2018

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Mongolia-Russia-China Economic Corridor Development Program

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sO

MONGOLIA –RUSSIA-CHINA ECONOMIC CORRIDOR CENTRAL ROUTE

SOURCE: https://www.iru.org/where-we-work/iru-in-asia-pacific/China-Russia-trade-corridor-pilot-caravan

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ROAD TRANSIT CORRIDOR

AH‐4

AH‐3

Eastern  Corridor

KYAKHTAALTANBULAG

TASHANTA

ZAMIIN-UUD ERLIAN

TAKASHIKEN BULGAN

EREENTSAV

SOLOVEVSK

BICHIGT

ULAAN BAISHINT

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JOINT CENTER FOR INVESTMENT PLANNING AND PROJECTION

InvestmentResearch center (MFA)

Joint Center for Investment Planning and

Projection based in Ulaanbaatar

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COOPERATION WITH TRANSIT COUNTRIES IN SIMPLIFICATION AND HARMONIZATION OF BORDER CROSSING

RUSSIA to CHINA CHINA to RUSSIA1. Railway border crossing:• Mongolia introduced parallel technology system

that reduced train receiving procedure time atZamiin-Uud station by 173 minutes (248minutes).

2. Faster processing of container trains:

• Excluded the locomotive changing procedure forwhole travel;

• Technical maintenance time at technical stationreduced from 60-70 minutes to 30-40 minutes.

Reduced the travel time: freight transportation 850-950 km per day.

Russia to China: 28 hours, became 27% faster

China to Russia: 31 hours, became 26% faster

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SIMPLIFICATION: EXCHANGE INFORMATION BETWEEN RAILWAY STAKEHOLDERS

In 2016, Mongolian and Russian railway authorities signedcontract on exchanging electronic documents by IFTMIN:14103 documents received, 12591 documents sent.

Phase I:

Beginning stage of paperless procedure for railway transportation: Consignment notes and Transfer lists are exchanged fully Electronic version since May 2017/IFTMIN, IFTSUM/.

In 2018, started implementing E-sign between UlaanbaatarRailways and Russian Railways, with regard to internationaland domestic transport documents.Phase II:

FACILITATION MEASURES AT RAILWAY BORDER CROSSINGS

Development of sufficient and efficient capacities for transshipment: Zamiin-Uud Regional logistics center

Zone-2: 70Т GANTRY CRANE OPERATIONAL AREA

Zone-3: Open Warehouse

Zone-1: 50T CRANE 4 RAILWAY ACROSS

Zone-3Enclosed Warehouse

Capacity 5 million ton/yearInvestment 71,64 million USDOperation starts 2019

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LEGAL AND POLICY REFORM

• Road Law ( Renewed in 2017)

• Waterway Transport Law (Renewed in 2017)

• State Policy on Civil Aviation (amended)

• State Policy on Railway Transport (amended)

• Transport law (planning to renew)

• Railway Transport Law (planning to renew)

• Civil Aviation Law (planning to renew)

• State Policy on Road Transport (planning to map out)

POLICY MEASURES AT NATIONAL LEVEL

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INTERNAL:

1. Insufficient coordination among the government agencies as well as with private sector with regard toimplementation of the VPoA

2. Lack of adequate financial resources to implement infrastructure facilities that connect with those oftransit countries. Example: considerable missing railway links remain in Mongolian territory thathamper actual benefits the preferential agreements reached with transit countries in transittransportation.

3. Lack of institutional capacity in formulating bankable mega infrastructure projects.

EXTERNAL:

1. Insufficient attention given by the transit countries, especially at local government level, to implementation of the VPoA

2. Insufficient cooperation with transit countries’ ministries of transportation and agencies responsible for border, customs controls.

CHALLENGES

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INTERNAL:

1. Establish a National Working Group, led by Deputy Prime Minister, on the coordination of VPoAimplementation

2. Actively look for financial resources from various financial institutions and companies, and explorevarious ways of financing to construct necessary infrastructure facilities

3. Implement capacity building programs in cooperation with development partners

EXTERNAL:

1. Actively work to deepen cooperation with transit countries’ relevant ministries and agencies.

2. Call upon transit countries to make more efforts to implement the VPoA. Global and regional review reports on the implementation of the VPoA should put more emphasis on the implementation progress of the transit countries.

3. The outcome document of the Comprehensive High-level Midterm Review should call upon not only the landlocked developing countries, but also transit countries and developments partners to prepare and publish their reports on the implementation of the VPoA

SOLUTIONS AND SUGGESTIONS

THANK YOU FOR YOUR ATTENTION